EUR/USD remains under pressure and challenges 1.1300

EUR/USD extends the bearish start of the week on Tuesday.
The German IFO Business Climate will take centre stage in the docket.
CB Consumer Confidence next of significance in the US calendar.

Pablo Piovano FXStreet

The selling bias around the single currency remains well and sound on Tuesday and puts EUR/USD under pressure near the 1.1300 neighbourhood.

EUR/USD looks to data, FOMC

EUR/USD sheds ground for the second session in a row on Tuesday amidst the continuation of the recovery in the greenback, which lifted the US Dollar Index (DXY) back to the key 96.00 zone despite the mixed activity in US yields.

In the meantime, investors are expected to remain wary ahead of the upcoming FOMC event on Wednesday, while the geopolitical front – with Russia, Ukraine and the US in the centre of the debate – is seen dictating the mood in the more macro scenario.

In the domestic calendar, the German Business Climate measured by the IFO survey will grab all the attention later on Tuesday ahead of the US Consumer Confidence for the month of January and releases from the US housing sector.

What to look for around EUR

EUR/USD seems to have met a tough barrier in the area below 1.1500 in mid-January, sparking a corrective downside soon afterwards in tandem with the strong recovery in the greenback. Moving forward, there is not much optimism around the pair, particularly in light of the Fed’s imminent start of the tightening cycle vs. the accommodative-for-longer stance in the ECB, despite the high inflation in the euro area is not giving any things of cooling down for the time being. On another front, the unabated advance of the coronavirus pandemic remains as the exclusive factor to look at when it comes to economic growth prospects and investors’ morale in the region.

Key events in the euro area this week: Germany IFO Business Climate (Tuesday) – Germany GfK Consumer Confidence (Thursday) – Germany Advanced Q4 GDP, EMU Final Consumer Confidence.

Eminent issues on the back boiler: Asymmetric economic recovery post-pandemic in the euro area. ECB stance/potential reaction to the persistent elevated inflation in the region. ECB tapering speculation/rate path. Italy elects President of the Republic in late January. Presidential elections in France in April.

EUR/USD levels to watch

So far, spot is losing 0.14% at 1.1308 and faces the next up barrier at 1.1369 (high Jan.20) seconded by 1.1469 (100-day SMA) and finally 1.1482 (2022 high Jan.14). On the other hand, a break below 1.1290 (weekly low Jan.24) would target 1.1272 (2022 low Jan.4) en route to 1.1221 (monthly low Dec.15 2021).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.